Finances-Friendly Environment in U.K. – Not Scared By The Rise of Cryptocurrency

Britain sustained a finances-friendly environment
centered around the City of London; however, the U.K. has been less welcoming
in the case of cryptocurrency when compared to traditional finance. Suspicion towards cryptocurrency and the lack
of regulatory clarity has been one of the reasons why the growth of
cryptocurrency in the U.K. is not doing as well as it actually should have
been.

Cryptocurrency trends in the U.K. are changing as
the Financial Conduct Authority (FCA) is beginning to update its guidelines on the
cryptocurrencies. A series of regulations concerning the cryptocurrency is due
towards the end of the year.

The current regulatory environment though in its
primordial stage, will go a long way in ensuring a standardized regulated
environment, eventually establishing a situation where the general public and
the investors will feel that the crypto is safe.

When it comes to its position among the rest of the world in the cryptocurrency leader board, U.K. rests in the middle and the upper ranges in terms of standards and executions in the regulatory ranking. The U.K. does not have any specific regulation targeting the cryptocurrency industry. It has been lenient towards the crypto despite several officers having outright bad opinion on the Bitcoin (BTC) and other digital currencies.

The U.K. has not banned cryptocurrency either
generally or any tokens specifically.
Further, no strict financial laws of the U.K. are applied to existing
cryptocurrencies. The financial giants
and other regulators in the U.K. did not come down slowly on the cryptocurrency;
until date, they did not strictly believe that the industry has been strict
enough to institute regulatory measures.

Mark Carney, Bank of England Governor stated
during March 2018 that “the market for cryptocurrencies is not a threat to U.K.
financial stability.” He further
said, “Crypto-assets do not pose any kind of material risks to financial
stability. Looking ahead, financial stability risks could rise if retail
participation significantly increases or if there are no material improvements
in market integrity, anti-money laundering standards, and cyber defenses.”

Lawmakers and British Authorities have not been
scared by the rise of cryptocurrency and the Government and Her Majesty’s Revenue
and customs have been comfortably taxing the cryptocurrency revenue of
crypto-related business per the existing tax regime.

Given
the lack of specific regulations or laws and the existing regulatory
uncertainties, it is necessary for a well-designed regulatory regime for crypto
assets in the U.K. The U.K. government
has been positive about crypto and countries like Japan and Switzerland have
taken a healthy initiative.

About The Author

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche.